A Medicare Trap
My associate attorney Kristy Garside and I presented
material on Social Security, dividing pensions, Social Security Disability,
Medicaid and Medicare at a Rhode Island Bar Association seminar last week. The seminar
was delivered to about 50 attorneys and was titled “When Your Older Clients
Divorce.” The Medicare portion of our presentation utilized written material by
Robin G. Smith of Robin G. Smith Consulting, an elder-advice professional. We
emphasized a “Medicare Trap” from her material.
Medicare Part B covers doctor visits, lab tests, diagnostic
imaging, and outpatient procedures, and can be thought of simply as a classic
80/20 health insurance plan. Neither Part A or part B covers prescription
drugs. Having BOTH Parts A and B is necessary to get either Supplemental
insurance (Medigap), or to enroll in a Medicare Advantage plan (Part C). The
problem “trap” is regarding those over 65 who are still working and covered by
their employers insurance (and their spouses): The worker and spouse can elect
to decline Part B (thus avoiding paying the premium) without incurring a late
sign-up penalty. However, if the employee retires or otherwise loses employer
coverage, he and his over 65 year old spouse MUST sign up for Medicare Part B
within 63 days of leaving the job, even if the employer had offered COBRA
benefits. Failure to do so will incur a Medicare penalty for late sign-up that
is both financially onerous and permanent. Medicare counts the time from the
day the employee left the job, and does not take COBRA payments into account at
all. In addition, the spouse might not be able to sign up at all until long
after the date the coverage ended. When a couple divorces, the divorce settlement
often requires coverage until the non- working ex-spouse reaches age 65. The
ex- spouse must sign up for Part B to avoid a Medicare penalty. If the
divorcing parties are over 65, and have been covered by the other’s employer’s
insurance, the spouse must sign up for Part B upon the divorce.
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The Law Offices of Jeremy W. Howe, LTD. are ElderLaw attorneys in Rhode Island who specialize in wills and trusts, estate planning, guardianship, probate, and Veterans Aid and Attendance Benefits.
They also are Newport Rhode Island Divorce lawyers, attorneys, mediators, and arbitrators providing services for family law issues such as divorce, child custody and visitation, support, and military family law.
Call them today at 401-841-5700 or visit them on the web at http://www.CounselFirst.com.
